Fitch: Pension lawsuit action not a concern

Thursday

May 15, 2014 at 1:30 PM

The Associated Press

A major credit-rating house says a hold on a lawsuit involving Illinois' pension overhaul is not cause for concern.

Fitch Ratings issued a statement Thursday saying experts expected a strong legal challenge to the overhaul that became law last fall. And it pointed out that no one is counting on savings from the bill any time soon.

A Sangamon County judge issued a stay Wednesday in a lawsuit filed by unions, state employees and retirees challenging the constitutionality of the deal. It aims to close a $100 billion budget gap in five pension systems but cuts benefits to retirees and increases employees' contributions.

Fitch rates Illinois' credit as the lowest of any state in the nation.